Tax refund through PAYE

hypnoticmonkey88

Hi,

So if I outline my situation in brief:

1) I worked, on a salary of £18k a year, for the past 2 years, up until 15th September.
2) My income up until the end of my employment was £7,500. However, I have paid ~£800 in income tax, due to the fact that my tax code assumed I would be working the full tax year.
3) I have now returned to full time study.
4) I filled in a P50 to apply for a tax refund, and was told that I hadn't ticked the box saying I didn't expect to return to work within four weeks, so was only given a small refund of £72.
5) Based on income earned to date, my tax bill should be ~£10, rather than the ~£800 I have paid.
6) When I sent off the P50 I didn't expect to work in the 4 weeks after sending it, but apparently I didn't tick the box.
7) Today I started a new part time job to supplement my student bursary.
8) According to the HMRC website, because I am now in employment again, my tax refund will be paid through PAYE.
9) I would need to earn a further £3750 and not pay tax on it for my tax liability for the tax year 2012/13 to be equal to the tax I have paid. If I earn less than this, I will still be owed tax.
10) I will not even earn half of this amount, if that.
11) It is therefore impossible for my overpaid tax to be repaid to me through PAYE by simply not making any deductions.
13) If I had just sent the form off before I was offered a job, I would have got the £800 rebate and been taxed 20% of my earnings, on the basis that I had already used up my personal allowance.

So I have the following questions:

a) Will HMRC *pay my employer* to enable them to *add money* to my Payslip to effect my tax refund?
b) If not, can I get in contact with HMRC and get them to cough up before the end of the tax year?

I really do need the cash now, not some time post-April next year... I was expecting to get it before I went and got myself a job!

Any advice at all would be great.

Many thanks.

dori2o

Hand in the P45 HMRC gave to you after they made the unemployment repayment (£72) to you, directly to your new employer.

They will input the information into their system, and will refund you whatever is due to be refunded at this point in the year.

Every week/month after then that passes, if you are earning less than £155 a week/£675 a month, you employer will continue to make small repayments to you each time you get paid until you pay and tax has equalised.

HMRC will not have to give any money to your employer to enable them to make the repayment(s). You employer will factor this into any payments they make to HMRC when they become due.

You will not be able to get a lump sum payment of all the tax you were expecting back at the time you left your original employer whilst you remain in employment.

If you leave this employer, and don't intend to work again before the end of the tax year, you can make a further P50 declaration, indicating you do not expect to work again before 06/04/2013.

hypnoticmonkey88

dori20, thank you very much for the useful and quick response.

The only query I now have is over:

"HMRC will not have to give any money to your employer to enable them to make the repayment(s). You employer will factor this into any payments they make to HMRC when they become due."

My employer is a start up with very few employees, most of whom are students who also won't be earning over the PA, so I doubt the tax liability of the company will be much, if anything. Do you know if this will affect my position?

Again, many thanks. Your reply was fab, and just what I needed to know!

dori2o

hypnoticmonkey88 wrote: »

dori20, thank you very much for the useful and quick response.

The only query I now have is over:

"HMRC will not have to give any money to your employer to enable them to make the repayment(s). You employer will factor this into any payments they make to HMRC when they become due."

My employer is a start up with very few employees, most of whom are students who also won't be earning over the PA, so I doubt the tax liability of the company will be much, if anything. Do you know if this will affect my position?

Again, many thanks. Your reply was fab, and just what I needed to know!

The best thing your employer could do is speak to the new employers helpline who can give them the advice they need on this matter.

http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=PXkbJ3Oml5Q

I only deal with personal tax, not the business side of things.

I know when working tax credits used to be paid via the employer the employer could apply to HMRC to have money forwarded to them if they didn't have the cash to pay the tax credits element of an individuals salary. Whether such a scheme exists for making refunds to individuals I'm not sure Im afraid.

Dazed_and_confused

You could point your (new) employer in the direction of

http://www.hmrc.gov.uk/paye/intro/claim-refund.htm